FuelCell Energy, a global leader in decarbonizing power and producing hydrogen, recently reported its financial results for Q1 2023, ended January 31, 2023, with generation revenues increasing by more than $60 million to a total of $400 million. FuelCell Energy is continuing its efforts to produce large-scale fuel cell carbon capture and storage technology, as demonstrated by the expansion of its Calgary-based manufacturing facility. The company also signed an MOU with a subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad to collaborate on developing large-scale electrolyzer facilities for the Asian, New Zealand, and Australian markets.
FuelCell Energy is well-positioned to capitalize on the increasing demand for renewable technologies, driven by strong global support for the energy transition, including the U.S. Inflation Reduction Act and the Korean Hydrogen Economy Roadmap. The company is focusing on commercialization activities and achieving long-term profitable growth, while executing its strategy to Grow, Scale, and Innovate.
While its gross margin improved to 15.2%, the company experienced a net loss of $24.1 million, with non-recoverable costs related to the construction of the Toyota project factoring into this. However, the company expects to achieve commercial operations on the Toyota project by July 8, 2023.
The company has plans to add an additional 400 MW of solid oxide production capacity in the United States, and work is currently underway in advancing its carbonate and solid oxide platform capacity expansion plans. Finally, backlog represents future revenue under long-term PPAs, and FuelCell Energy anticipates that service and generation portions of backlog, including definitive agreements executed by the company and its customers, will represent a weighted average term of approximately 17 years.
Forward-looking statements in this press release include projections and estimates that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. FuelCell Energy will host a conference call, which will be available on its website approximately two hours after the conclusion of the call, to discuss Q1 results and key business highlights in more detail.